Knowee
Questions
Features
Study Tools

A corporate bond makes payments of $96.70 semi-annually for ten years with a final payment of $2096.70. Which of the following best describes this bond?Question 8Answera.a 10-year bond with a face value of $2000 and a coupon rate of 9.2% with semi-annual paymentsb.a 10-year bond with a face value of $2096.70 and a coupon rate of 9.7% with semi-annual paymentsc.a 10-year bond with a face value of $2000 and a coupon rate of 9.7% with semi-annual paymentsd.a 10-year bond with a face value of $2096.70 and a coupon rate of 9.2% with semi-annual payments

Question

A corporate bond makes payments of 96.70semiannuallyfortenyearswithafinalpaymentof96.70 semi-annually for ten years with a final payment of 2096.70. Which of the following best describes this bond?Question 8Answera.a 10-year bond with a face value of 2000andacouponrateof9.22000 and a coupon rate of 9.2% with semi-annual paymentsb.a 10-year bond with a face value of 2096.70 and a coupon rate of 9.7% with semi-annual paymentsc.a 10-year bond with a face value of 2000andacouponrateof9.72000 and a coupon rate of 9.7% with semi-annual paymentsd.a 10-year bond with a face value of 2096.70 and a coupon rate of 9.2% with semi-annual payments

...expand
🧐 Not the exact question you are looking for?Go ask a question

Solution

The bond in question is a 10-year bond with a face value of 2000andacouponrateof9.22000 and a coupon rate of 9.2% with semi-annual payments. This is because the bond makes semi-annual payments of 96.70 for ten years, which is equivalent to a coupon rate of 9.2% on a face value of 2000.Thefinalpaymentincludesthefacevalueofthebond,whichis2000. The final payment includes the face value of the bond, which is 2000, plus the final coupon payment of 96.70,totaling96.70, totaling 2096.70. Therefore, the correct answer is option a.

This problem has been solved

Similar Questions

A corporate bond with a face value of $100,000 was issued six years ago and there are nine years remaining until maturity. The bond pays semi-annual coupon payments of $4500, the coupon rate is 9% pa paid twice yearly and rates in the marketplace are 9.4% pa compounded semi-annually. What is the value of the bond today? Group of answer choices $98,975.05 $97,606.30 $71,095.02 $100,000.00 $98,196.97

An 8% coupon-paying bond has a yield to maturity of 10% p.a. The bond has a face value of $100 and 19 months to maturity. Coupons are paid semi-annually. What is the bond’s clean price? Choose the closest answer. A. $100 B. $98.89 C. $97.12 D. $96.84

1. What is the cash flow of a 8-year bond that pays coupon interest semiannually, has a coupon rate of 6%, and has a par value of $100,000?

Select Any One Of the Following Options: A Rs. 100 par value bond, bearing a coupon rate of 11.25% will mature after 7.5 years. What is the value of the bond, if the discount rate is 12.25% and coupons are paid semi-annually?

D&G Ltd. issues bonds with a $1,000 face value that make coupon payments of $15 every six months. What is the annual coupon rate? Group of answer choices 1.50% 3.00% 6.00% 9.00% 30.00%

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.